ShenZhen Longtu Photomask Co., Ltd. Overview
Longtu Photomask is one of a small number of independent (non-captive) semiconductor photomask makers in mainland China. It designs and writes quartz and soda-lime masks, the patterned "master plates" that transfer circuit images onto wafers during lithography. Its Shenzhen plant is a high-utilisation, mass-production base for 130nm-and-above masks used in power devices, MEMS sensors, analog and signal-chain ICs, power-management ICs and IC packaging. Since the August 2024 IPO, the company has been moving up the node curve through its wholly owned Zhuhai subsidiary. Zhuhai phase I mass-produces 90nm masks, including KrF phase-shift masks (PSM), and is sampling 65/55nm products. Phase II, a CNY 1.95bn line for 40nm–28nm masks, is funded by a CNY 1.46bn private placement that the CSRC registered in August 2026. The investment case rests on domestic substitution in a market dominated by Toppan/Tekscend, Photronics and DNP. The near-term financial picture is a margin reset: price competition at mature nodes and Zhuhai ramp-up losses cut nine-month 2026 net profit by 63.7% even as revenue grew 14.8%.
What the company does. Longtu's sole business is the research, development, production and sale of semiconductor photomasks. A photomask carries a chip layer's circuit pattern. That pattern is exposed through a lithography tool onto photoresist on a wafer, so the mask is a consumable "template" that sets the dimensional accuracy, overlay and defect profile of every wafer printed from it. Each chip design needs a full mask set, roughly 30 layers at 130nm and many more at advanced nodes. Every new design (tape-out) and every engineering change therefore generates new mask demand.
Company's own description (2025 annual report). Management describes Longtu as a scarce independent third-party semiconductor mask maker in China. It follows the domestic semiconductor roadmap, iterates its technology and products continuously, and has raised the wafer-node capability of its mass-produced masks to 90nm, with higher nodes in sampling and under construction. Its masks serve mature-node signal-chain and power-management ICs and specialty processes such as power devices, MEMS sensors and advanced packaging. The report also stresses that mask making is know-how intensive: engineers must combine process, equipment, software and technical expertise.
Business and revenue model. The model is 100% product revenue. Each mask is custom-made to a customer's design data and sold directly. The company does not sell subscriptions, services or licences. A small amount of revenue comes through sales agents who help develop and maintain customers in Taiwan, China. Pricing is per mask, depending on substrate (quartz or soda-lime), size, node, mask type (binary or phase-shift) and specification grade. In H1 2026 the average quartz mask sold for CNY 4,130 and the average soda-lime mask for CNY 1,345 (2026 private-placement prospectus).
Value-chain position. Longtu sits upstream of wafer fabs and packaging houses and downstream of substrate and equipment suppliers:
Raw materials: Participants: Quartz blanks, soda-lime blanks, optical/chrome films, pellicles, photoresist; Longtu's exposure: Quartz substrates and optical films are mainly imported from Japan and Taiwan. The top five suppliers took 61.07% of 2025 raw-material purchases
Capital equipment: Participants: Laser and electron-beam mask writers, dry etch, inspection (AOI), repair, metrology; Longtu's exposure: Mask writers come from overseas vendors such as Mycronic (Sweden), Heidelberg Instruments (Germany) and JEOL (Japan) (IPO prospectus)
Mask making: Participants: Captive fab mask shops; independent mask makers; Longtu's exposure: Longtu is an independent third-party supplier
Users: Participants: Wafer foundries and IDMs, MEMS makers, packaging/bumping houses, fabless designers, universities; Longtu's exposure: About 20 12-inch fabs, more than 50 8-inch fabs, fabless designers and research institutes
Customer types and named customers. Core customers named in filings include Hua Hong Grace (华虹宏力), SMIC-affiliated United Nova/芯联集成, Silan Microelectronics (士兰微), Hangzhou Lion Micro (立昂微), Yandong Micro (燕东微), Nuvoton (新唐科技), BYD Semiconductor, CanSemi (粤芯半导体), Huatian Technology (华天科技), Changfei Advanced (长飞先进), Yangjie Technology (扬杰科技) and Innoscience (英诺赛科). The IPO prospectus also listed GTA Semiconductor (积塔半导体), Injoinic (英集芯), Chipown (芯朋微), StarPower (斯达半导体), Tsinghua University and Shanghai Jiao Tong University. In H1 2026 the Zhuhai plant passed qualification audits at Hua Hong Grace, GTA Semiconductor, CanSemi, Sanan Optoelectronics and Zhuzhou CRRC, and some of these customers have moved to small-batch orders.
End-markets. Power semiconductors (IGBT, MOSFET, SiC/GaN devices) are the largest application. They grew from 21.22% of revenue in 2020 to 57.95% in 2022, according to the IPO prospectus. The other end-markets are MEMS sensors, IC packaging (bumping, RDL, TSV), analog, signal-chain and power-management ICs, and MCUs. Final demand comes from new-energy vehicles, photovoltaics, industrial control, wireless communications, IoT and consumer electronics.
Independent characterisation. Longtu is a focused, sub-scale specialist. Revenue was CNY 247M in 2025 against USD 849M at Photronics. It built a high-margin franchise, with gross margins near 60% before 2024, by substituting imports for mature-node power and MEMS masks, a niche the global majors treat as secondary. That niche is now crowded. Management describes the 130nm-and-above segment as being in the late stage of domestic substitution, and Longtu has had to cut prices to protect share. Its strategic answer is to climb to 90nm, 65/55nm and eventually 40–28nm, where Chinese supply is thin. That requires large capital outlays, roughly CNY 1.95bn for one line, set against a 2025 equity base of CNY 1.21bn, and long qualification cycles of 12–18 months per node per customer. In effect the company is in transition from a cash-generative niche player to a capital-intensive challenger.
Strategy
Stated strategy. Longtu's long-term goal is to become a first-class domestic and internationally leading semiconductor mask company. The 2025 annual report, the placement documents and investor-relations disclosures set out five strategic themes:
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Climb the node ladder. Keep 130nm-and-above mass production in Shenzhen as the base business. Use Zhuhai to industrialise 90nm, then 65/55nm, then 40nm and 28nm, adding KrF-PSM, ArF-PSM and OMOG products.
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Differentiated customer strategy. Shenzhen deepens relationships with existing customers and defends share, if necessary through price. Zhuhai targets high-end 12-inch fab customers and accelerates qualifications.
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Domestic substitution of high-end masks. The placement feasibility study notes that high-end masks are still dominated by overseas suppliers and positions Longtu as a domestic alternative for national supply-chain security.
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Supply-chain localisation. Build a domestic supplier qualification system for quartz blanks and films. Management will introduce domestic substrates only once they meet stability and yield requirements.
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Talent retention through equity incentives. The 2026 restricted-share plan covers 1.17M shares, 0.88% of share capital.
Initiatives announced in the last 24 months
Zhuhai phase I commissioning: Date: Q2 2025; Detail: IPO-funded manufacturing base and R&D centre; Status: 90nm in stable mass production; IPO projects closed June 2026
40nm–28nm mask line (Zhuhai phase II): Date: Plan approved Mar 2026; Detail: CNY 1,954.37M total investment; CNY 1,460M from the placement; electron-beam writers, dry etch, acid-free cleaning, advanced metrology, aerial-image (AIMS-type) simulation and repair tools; 36-month build; 15,000 masks a year at full output; Status: CSRC registration 27 Aug 2026; issue pending
2026 restricted-share incentive plan: Date: Mar–Apr 2026; Detail: 936,000 shares granted to 56 people at CNY 24.12 (four core technical staff and 52 key business staff); 234,000 shares reserved; Status: Being expensed
Advanced-packaging mask push: Date: Disclosed Jun 2026; Detail: RDL, TSV and hybrid-bonding mask demand described as a medium-to-long-term growth area; Status: Company cautioned in July 2026 that current revenue from these customers is small
- 2025 "Quality, Efficiency and Shareholder Returns" action plan — Date: Apr 2025; Detail: SSE-encouraged plan covering operations, R&D, dividends and governance; Status: Published with the Q1 2025 report
Supervisory-board abolition and governance update: Date: Oct 2025 – Apr 2026; Detail: Audit committee takes over oversight; internal-control rulebook revised in April 2026; Status: Completed
Medium-term targets. Management has not issued quantified revenue or margin guidance. Its stated operating priorities for Q4 2026 are to keep the Shenzhen specialty-process base stable, increase Zhuhai 90nm volumes and convert 65/55nm samples into small-batch and volume orders. Management also warned that elevated Zhuhai depreciation and share-based payment costs will persist for some time, so profit improvement will take a while. When fully operational, the placement project is expected to add 15,000 masks a year.
Products & Services
All products are custom photomasks. The portfolio can be organised by substrate, mask technology, node and application.
Enabling technologies. The 2025 annual report lists 14 core technologies: CAM non-standard data recognition and conversion; optical proximity correction (OPC); precision alignment marks; PSM layout processing; electron-beam lithography and overlay; lithography process control; positional accuracy matching; fine exposure control; precision process matching; development and etch control; non-destructive PSM cleaning and precision pellicle mounting; high-precision metrology; defect repair and particle removal; and PSM defect repair.
Pricing model. Masks are priced per piece and quoted per order according to node, layer criticality, substrate and inspection grade. List prices are not published. Reported average selling prices appear in the organisational and segment structure above.
Product Portfolio
| Product | Description and key specifications | Target customers | Status / year |
|---|---|---|---|
Quartz binary masks (COG), 130nm and above | Chrome-on-quartz masks with high transmittance and low thermal expansion for i-line and KrF steppers. Core of Shenzhen output | Specialty-process fabs: power devices, MEMS, analog/BCD, PMIC | Mass production since the 2010s; main revenue line (83% of 2025 revenue) |
Soda-lime masks | Lower-cost glass substrates for coarse layers, contact/proximity printing, packaging and bumping | Packaging houses, MEMS, discrete and power-device makers, universities | Mature product; 16.7% of 2025 revenue with the highest gross margin (50.8%) |
Power-semiconductor mask sets | Mask sets for IGBT, super-junction MOSFET, SiC and GaN devices | BYD Semiconductor, StarPower, Yangjie, Innoscience, Changfei Advanced, Silan | Largest application since 2022 |
MEMS sensor masks | Masks for deep-etch and double-sided MEMS processes | MEMS foundries and IDMs | Mass production |
IC packaging / advanced-packaging masks | Masks for bumping, RDL, TSV and hybrid-bonding alignment steps | Huatian Technology and other packaging houses | Mass production. Management calls advanced packaging a medium-to-long-term growth area but stated in July 2026 that sales to these customers are a low share of revenue |
90nm-node masks, including KrF-PSM | Attenuated phase-shift masks for KrF (248nm) lithography, made at Zhuhai with electron-beam writing | 8-inch and 12-inch foundries | Mass production since H1 2025 |
65/55nm-node masks (KrF-PSM and ArF-PSM) | ArF (193nm) phase-shift masks with OPC | 12-inch foundries | Sampling and verification at several customers through Q3 2026 |
40nm-node masks | Equipment for the 40nm node installed at Zhuhai | 12-inch foundries | Process development |
40nm–28nm masks: binary, PSM and OMOG | Planned 15,000 masks a year once the line reaches full output, adding opaque-MoSi-on-glass (OMOG) to the binary and PSM lines | High-end analog IC and MCU makers | Placement-funded project with a 36-month build |
Financial Narrative
All figures are in CNY under China Accounting Standards for Business Enterprises. Sources are the IPO prospectus (2021–2022), the 2024 and 2025 annual reports, the 2026 placement sponsor letter and prospectus (2023–2025 and H1 2026), and the Q3 2026 report.
Income statement — five-year view
Revenue CAGR from FY2021 to FY2025 was 21.4%. The FY2023 gross margin is calculated from revenue of CNY 218.29M and cost of sales of CNY 89.79M.
Income statement — detailed three-year view
Diluted EPS equals basic EPS in each year because the company has no dilutive instruments outstanding apart from unvested 2026 restricted shares. The preliminary FY2025 release gave EPS of CNY 0.43; the audited figure is CNY 0.42.
Quarterly trajectory
Quarterly revenue comes from the 2025 annual report and the 2026 quarterly and interim reports. Q1 and Q2 net profit in both years and the 2025 Q2 and 2026 Q1/Q2 gross margins are derived from cumulative disclosures and rounded. Gross margin for the first nine months of 2026 was 28.65%, against 48.63% a year earlier.
Balance sheet
Year-end cash and equivalents for 2023 and 2024 are calculated backwards from the FY2025 closing balance and the reported net change in cash each year. The 2023 trading-financial-asset balance is shown as zero because the company held only cash before the IPO. No goodwill exists, since the company has made no acquisitions. Non-current liabilities jumped by CNY 212.8M in 2025 as Zhuhai construction and equipment were funded with long-dated liabilities alongside IPO proceeds. At 30 September 2026 the consolidated liability-to-asset ratio was 20.95%.
Cash flow
The 2024 investing outflow combines Zhuhai capital expenditure with placement of IPO proceeds into wealth-management products, which are shown as trading financial assets. Those products were largely redeemed in 2025. Of the CNY 553.5M net IPO proceeds, CNY 550.3M had been deployed by 31 December 2025, including CNY 376.3M of pre-funded own capital that was later reimbursed. Operating cash flow for the first nine months of 2026 was CNY 143.03M, up 229.45%, but CNY 116.82M of that was a one-off refund of accumulated input VAT on Zhuhai equipment. No share buybacks have been made.
Ratios
The 2023 interest-coverage cell is zero because the company incurred no interest expense that year. The 2023 weighted ROE comes from the IPO prospectus. Days metrics are calculated as 365 divided by the reported turnover ratio. A full cash-conversion cycle cannot be computed because payables turnover is not reported in the summary ratios.
Commentary on trends, inflections and drivers
Growth phase (2020–2023). Revenue quadrupled from CNY 52.7M in 2020 to CNY 218.3M in 2023, while gross margin stayed around 59–61%. Three forces drove this. Chinese power-device makers (IGBT, SiC) were rapidly localising their supply chains. Longtu could serve 130nm-and-above specialty processes that the global majors deprioritised. And the asset base was small and largely depreciated. Net margin peaked at about 38%.
Capacity-constrained plateau (2024). Revenue grew 12.9% to CNY 246.5M, a five-year high. Brokers noted, however, that the Shenzhen plant had hit its capacity ceiling, and growth slowed sharply from the 35% pace of 2023. Net profit still rose 9.8% to CNY 91.8M. The IPO more than doubled equity, to CNY 1.20bn, and ROE fell from 16.5% to 11.7% because the capital had not yet been deployed.
Inflection to margin compression (2025). Revenue was flat at CNY 246.7M, while gross margin fell 11.7 points to 45.3% and net profit dropped 38.9% to CNY 56.1M. Management gave three causes. First, strategic price cuts to defend share in the 130nm-and-above segment, where domestic substitution is in its late stage and competition has intensified. Second, Zhuhai start-up costs: the subsidiary lost CNY 19.9M on CNY 27.3M of revenue. Third, inventory impairments on Zhuhai raw materials. Margin deteriorated every quarter, from 52.4% in Q1 to 35.8% in Q4. R&D intensity rose to 11.1%, and higher selling and administrative spending added pressure.
2026: volume recovers, profit does not. Nine-month revenue rose 14.8% to CNY 210.4M as Zhuhai began batch deliveries and order backlogs grew. Nine-month net profit fell 63.7% to CNY 18.8M. Q3 alone produced a pre-tax loss of CNY 0.16M and net profit of only CNY 1.86M after tax effects, with gross margin of 23.6%. The decline reflects continued price concessions at the Shenzhen plant, negative gross margin at Zhuhai as more equipment was moved into fixed assets, share-based payment costs from the April 2026 incentive grant, and further inventory write-downs. The quartz-mask ASP fell 5.9% between 2025 and H1 2026, and quartz gross margin collapsed from 44.2% to 28.2%.
Balance sheet. Total assets grew 2.4x in two years, to CNY 1.55bn, and non-current assets reached 69% of the total, up from 51% in 2023. Leverage remains modest at a 21.7% liability ratio at end-2025 and 20.95% at September 2026, with a current ratio of 4.5x. The 40–28nm project (CNY 1.95bn) is larger than the entire balance sheet, however. It cannot proceed at full pace without the CNY 1.46bn placement, which management plans to supplement with operating cash and bank borrowing. Receivable days lengthened from 96 to 106 in 2025, consistent with softer pricing power.
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Product Lines
| Product line | 2021 | 2022 | 2023 | 2025 | H1 2026 |
|---|---|---|---|---|---|
Quartz masks (% of main revenue) | 53.12 | 69.59 | 78.79 | 83.34 | 83.19 |
Product Lines (2025–H1 2026)
| Product line | 2025 | H1 2026 |
|---|---|---|
Quartz masks gross margin (%) | 44.18 | 28.24 |
Soda-lime masks gross margin (%) | 50.84 | 46.84 |
Product Lines — Quartz mask ASP
| Product line | 2025 | H1 2026 |
|---|---|---|
Quartz mask ASP (CNY) | 4,388.65 | 4,130.35 |
Soda-lime mask ASP (CNY) | 1,281.22 | 1,344.77 |
Revenue by Segment and Revenue by Segment (%)
| Metric | 2020 | 2021 | 2022 |
|---|---|---|---|
Power-semiconductor mask revenue (CNY Mn) | 11.18 | 44.53 | 93.62 |
Share of total revenue (%) | 21.22 | 39.17 | 57.95 |
Group Entities
| Entity | Role | 2025 revenue (CNY Mn) | 2025 net profit (CNY Mn) |
|---|---|---|---|
Shenzhen Longtu Photomask (parent) | 130nm-and-above mass production, high utilisation | Not separately disclosed (group revenue 246.66 less Zhuhai) | — |
Zhuhai Longtu Photomask Technology (100%) | Phase I: 90nm in mass production, 65/55nm sampling. Phase II: 40–28nm line under construction | 27.29 | -19.90 |
“—” = not publicly disclosed.
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 113.7 | 161.5 | 218.29 | 246.50 | 246.66 |
Revenue growth (%) | 115.77 | 42.08 | 35.13 | 12.92 | 0.06 |
Operating profit (CNY Mn) | 47.5 | 71.7 | 95.42 | 102.00 | 57.64 |
Net profit attributable (CNY Mn) | 41.16 | 64.48 | 83.61 | 91.83 | 56.09 |
Net profit after non-recurring items (CNY Mn) | 41.39 | 61.06 | 81.79 | 90.36 | 54.30 |
Main-business gross margin (%) | 59.73 | 61.03 | 58.87 | 57.01 | 45.29 |
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View Subscription PlansIncome Statement and Per-Share Data
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Revenue (CNY Mn) | 218.29 | 246.50 | 246.66 |
Cost of sales (CNY Mn) | 89.79 | 105.98 | 134.87 |
Gross profit (CNY Mn) | 128.50 | 140.53 | 111.79 |
Operating profit (CNY Mn) | 95.42 | 102.00 | 57.64 |
EBITDA (CNY Mn) | 113.57 | 121.25 | 94.36 |
Pre-tax profit (CNY Mn) | 95.26 | 102.01 | 57.64 |
Net profit attributable (CNY Mn) | 83.61 | 91.83 | 56.09 |
Basic EPS (CNY) | 0.84 | 0.83 | 0.42 |
Gross margin (%) | 58.87 | 57.01 | 45.32 |
Operating margin (%) | 43.71 | 41.38 | 23.37 |
EBITDA margin (%) | 52.03 | 49.19 | 38.26 |
Net margin (%) | 38.30 | 37.25 | 22.74 |
R&D expense (CNY Mn) | 20.17 | 23.05 | 27.38 |
Income Statement and Margin Analysis (%) (Quarterly)
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|---|---|
Revenue (CNY Mn) | 54.37 | 61.55 | 67.34 | 63.40 | 62.0 | 74.4 | 73.95 |
Net profit attributable (CNY Mn) | 17.4 | 17.7 | 16.7 | 4.30 | 10.0 | 7.0 | 1.86 |
Gross margin (%) | 52.44 | 49.0 | 44.36 | 35.76 | 34.0 | 29.0 | 23.59 |
Balance Sheet and Per-Share Data
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Total assets (CNY Mn) | 631.59 | 1,313.15 | 1,546.83 |
Current assets (CNY Mn) | 306.72 | 541.38 | 485.76 |
Non-current assets (CNY Mn) | 324.86 | 771.77 | 1,061.08 |
Cash and cash equivalents, year-end (CNY Mn) | 208.78 | 51.61 | 178.09 |
Trading financial assets (CNY Mn) | 0 | 330.36 | 60.14 |
Total liabilities (CNY Mn) | 78.34 | 109.29 | 334.92 |
Current liabilities (CNY Mn) | 67.56 | 96.08 | 108.96 |
Non-current liabilities (CNY Mn) | 10.79 | 13.20 | 225.96 |
Shareholders' equity (CNY Mn) | 553.24 | 1,203.87 | 1,211.91 |
Working capital (CNY Mn) | 239.16 | 445.30 | 376.80 |
Book value per share (CNY) | 5.53 | 9.02 | 9.08 |
Cash Flow and Per-Share Data
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Operating cash flow (CNY Mn) | 101.48 | 109.23 | 80.27 |
Investing cash flow (CNY Mn) | -131.34 | -820.39 | -150.04 |
Financing cash flow (CNY Mn) | -3.99 | 553.99 | 196.26 |
Net change in cash (CNY Mn) | -33.88 | -157.17 | 126.49 |
Dividends paid (CNY Mn) | 0 | 0 | 53.40 |
Operating cash flow per share (CNY) | 1.01 | 0.82 | 0.60 |
Margin Analysis (%) and Financial Ratios (x)
| Ratio | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
ROE, weighted average (%) | 16.5 | 11.68 | 4.66 |
ROA, net profit / year-end assets (%) | 13.24 | 6.99 | 3.63 |
Current ratio (x) | 4.54 | 5.63 | 4.46 |
Quick ratio (x) | 4.41 | 5.51 | 4.35 |
Liabilities / assets, consolidated (%) | 12.40 | 8.32 | 21.65 |
Liabilities / assets, parent (%) | 8.63 | 3.93 | 5.59 |
Interest coverage (x) | 0 | 1,645.12 | 101.04 |
Asset turnover, revenue / year-end assets (x) | 0.35 | 0.19 | 0.16 |
Receivables turnover (x) | 3.81 | 3.79 | 3.44 |
Inventory turnover (x) | 10.59 | 10.37 | 9.75 |
Days sales outstanding (days) | 96 | 96 | 106 |
Days inventory outstanding (days) | 34 | 35 | 37 |
R&D / revenue (%) | 9.24 | 9.35 | 11.10 |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2024 | FY2025 |
|---|---|---|
Dividend per share (CNY) | 0.40 | 0 |
Total cash dividend (CNY Mn) | 53.40 | 0 |
Payout ratio (%) | 58.15 | 0 |
Revenue by Region and Revenue by Region (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Zhuhai subsidiary revenue (CNY Mn) | 0 | 27.29 |
Zhuhai share of group revenue (%) | 0 | 11.06 |
Shenzhen-derived revenue (CNY Mn) | 246.50 | 219.37 |
Share Price & Returns
| Reference point | Date | Price |
|---|---|---|
IPO price | 26 Jul 2024 | 18.50 |
First-day open | 6 Aug 2024 | 41.00 |
First-day close | 6 Aug 2024 | 34.90 |
Post-listing high | Late 2024 – early 2025 | 75.04 |
Post-listing low | 2024–2025 | 24.72 |
Close | 2 Apr 2025 | 50.67 |
Close | 8 May 2025 | 46.00 |
Close | 19 May 2026 | 49.30 |
Close | 27 Aug 2026 | 42.29 |
Valuation Multiples
| Multiple | Longtu Photomask | Qingyi Photoelectric |
|---|---|---|
P/E on FY2025 earnings (x) | 100.7 | 49.98 |
P/E on trailing 12-month earnings (x) | 244 | Not comparable at this date |
P/B on end-2025 equity (x) | 4.66 | 3.37 |
P/S on FY2025 revenue (x) | 22.9 | — |
Analyst Ratings & Targets
| Broker | Date | Rating | 2026E revenue (CNY Mn) | 2027E revenue (CNY Mn) | 2028E revenue (CNY Mn) | 2026E net profit (CNY Mn) | 2027E net profit (CNY Mn) | 2028E net profit (CNY Mn) |
|---|---|---|---|---|---|---|---|---|
China Post Securities | 27 Jul 2026 | Buy (initiation) | 330 | 450 | 590 | 60 | 100 | 150 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Dividend per share (CNY) | 0.40 | 0 |
Payout ratio (%) | 58.15 | 0 |
Analyst Conclusions
Management guidance. No numerical guidance has been given. For Q4 2026 management expects stable Shenzhen specialty-process volumes, rising Zhuhai 90nm volumes and the first conversions of 65/55nm samples into small-batch orders. It cautions that Zhuhai depreciation and share-based payment costs will continue to weigh on profit, so improvement will take time.
Consensus expectations. Coverage is limited. The only fresh public forecast, from China Post Securities, calls for revenue growth of about 34%, 36% and 31% in 2026, 2027 and 2028, and net profit of CNY 60M, 100M and 150M. The 2026 forecast now requires a Q4 net profit of about CNY 41M against CNY 1.9M in Q3, which looks at risk.
Bull case
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High-end node ramp. The 90nm KrF-PSM product is already in volume production, five new 12-inch customer audits were passed in H1 2026, and 65/55nm is in verification at several customers. If qualifications convert in 2027, Zhuhai could swing from losses to positive operating leverage on a largely fixed cost base.
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Funded capacity in a scarce segment. The registered CNY 1.46bn placement funds a 40–28nm line where Chinese merchant supply is very limited, positioning Longtu for a share of a China wafer-fab mask market of about CNY 10bn.
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Proven margin DNA. Longtu earned about 57–61% gross margins at its core nodes before the price war. A richer node mix could rebuild margins toward historical levels as PSM and OMOG masks command premium prices.
Bear case
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Margin trough not yet found. Gross margin fell from 52.4% in Q1 2025 to 23.6% in Q3 2026, the quartz ASP is still falling, and the company is cutting prices to hold share in its largest business.
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Capital intensity against scale. The CNY 1.95bn phase II line is larger than total assets were at end-2024. Combined with 12–18-month qualification cycles, depreciation will lead revenue for years, and ROE fell to 4.7% in 2025.
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Crowded high end. Luwei (40nm trial production) and Qingyi (Foshan 65nm base) are larger and better-capitalised, global majors have Chinese JV presence, and fab captive shops limit the merchant market. Imported equipment and blanks add geopolitical exposure.
Key catalysts (next 12 months)
Private placement pricing and completion: Expected timing: Within the 12-month CSRC registration window from 27 Aug 2026; What to watch: Issue price, investor mix, dilution
65/55nm customer releases: Expected timing: Q4 2026 – 2027; What to watch: First volume purchase orders at 12-inch fabs
FY2026 results and dividend decision: Expected timing: About March 2027; What to watch: Q4 margin recovery; whether dividends resume
Zhuhai gross margin turning positive: Expected timing: 2027; What to watch: Utilisation and depreciation absorption
Phase II equipment orders: Expected timing: After placement funding; What to watch: Writer deliveries, any export-licence issues
Guangdong Hongjian litigation: Expected timing: First hearing pending; What to watch: Release of frozen deposits; settlement amount
2026 incentive-plan vesting test: Expected timing: Linked to FY2026 performance; What to watch: Whether performance conditions are met
Lock-up expiry of controllers' shares: Expected timing: August 2027 (just beyond 12 months); What to watch: Any controller selling plans
Monitorables. The key indicators to track are quarterly gross margin, especially whether it stabilises above 25%; quartz-mask ASP; Zhuhai revenue and losses; receivable days; the liability ratio after bank-funded capex; and new customer qualifications at 65nm and below.
Analyst verdict. Longtu Photomask is a strategically relevant but financially stretched small-cap that has taken on a capital-intensive upgrade. In its first decade, a disciplined, founder-run company with a focused product line built a niche in mature-node power and MEMS masks. Margins approached 60%, and the company funded early growth with personal loans from its controllers. That niche has matured. Domestic substitution at 130nm and above is largely complete, peers have entered the segment, and Longtu has cut prices to keep customers, so gross margin halved within seven quarters. The IPO built Zhuhai phase I, which has delivered real technical progress (90nm KrF-PSM in volume production, 65/55nm in sampling) but has so far added depreciation faster than revenue.
The next two years will determine whether Longtu can become a credible domestic alternative at 65–28nm or remains a mid-sized supplier of commoditised mature-node masks. The CSRC-registered CNY 1.46bn placement removes the immediate funding constraint. It does not remove execution risk: long qualification cycles, imported tools subject to geopolitical risk, and better-capitalised rivals targeting the same nodes. At the August 2026 price the shares traded at about 100x 2025 earnings and 4.7x book, against roughly 50x and 3.4x for Qingyi, so the market is already paying for a successful high-end ramp. Balanced against the deteriorating near-term earnings trend, the risk-reward looks neutral to cautious until there is evidence of margin stabilisation, meaning Zhuhai gross margin turning positive and group gross margin recovering toward 35%, plus confirmed volume orders at 65nm or below. Successful placement execution with limited discounting, and the first ArF-PSM purchase orders from a 12-inch foundry, would be the clearest signals for a more constructive view.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Board tenure from | Born | Education | Prior roles |
|---|---|---|---|---|---|
Ke Hanqi (柯汉奇) | Chairman; chair of strategy committee; nomination committee member; actual controller | Feb 2018 | 1,965 | Postgraduate degree in solid-state physics; senior engineer | Shenzhen Sincere Enterprise Group, engineer and department manager (1988–1992); CSG Holding (China Southern Glass), division president and group vice-president (1992–2016) |
Ye Xiaolong (叶小龙) | Director and General Manager; legal representative; strategy and compensation committee member; actual controller | Apr 2010 | 1,972 | Bachelor's in environmental design | Shenzhen Qingyi Photomask (清溢光电), marketing manager, assistant GM and deputy GM (1998–2009) |
Zhang Daogu (张道谷) | Non-executive director; strategy and audit committee member; actual controller | Feb 2018 | 1,963 | Bachelor's in mechanical manufacturing processes and equipment | Hubei Huanggang Aluminium, deputy plant director (1983–1995); Shenzhen Meike Computer Design, GM (1995–2007); Shenzhen Meitailai Computer Design, GM (2009–present); Shenzhen Xingmeike Electronic Technology, executive director and GM (2016–Jan 2024) |
Yuan Zhenchao (袁振超) | Independent director (accounting professional); audit committee chair | Oct 2022 | 1,983 | PhD in accounting | Shenzhen University School of Economics: lecturer, associate professor and deputy director of the Finance & Accounting Experimental Centre |
An Fengwei (安丰伟) | Independent director; chair of nomination and compensation committees | Sep 2023 | 1,982 | PhD in semiconductor integrated science | Hiroshima University, assistant and associate professor (2013–2018); Panasonic Semiconductor, chief engineer (2018–2019); SUSTech Shenzhen–Hong Kong Institute of Microelectronics, associate professor (2019–present) |
Executive Leadership Team
| Name | Title | In role since | Born | Education | Background |
|---|---|---|---|---|---|
Ye Xiaolong | General Manager | Apr 2010 | 1,972 | Bachelor's in environmental design | See board table |
Wang Dong (王栋) | Deputy General Manager; core technical staff | Jan 2019 (joined Feb 2011) | 1,983 | Bachelor's in electronic science and technology | Sofi Consumer Communication, assistant engineer; Foxconn, engineer; Qingyi Photomask, quality service engineer; Longtu head of quality |
Deng Shaohua (邓少华) | CFO and Board Secretary | Board secretary May 2025; CFO Oct 2025 | 1,992 | Master's in investment; PRC CPA; legal professional qualification | China Merchants Securities investment banking (2016–2020); Shenwan Hongyuan Underwriting & Sponsorship, SVP and sponsor representative (2020–2022); Longtu board secretary (2022–2023) and GM assistant (2023–2025) |
Li Jiandong (李建东) | Securities Affairs Representative | Jul 2022 | 1,996 | Master's in finance, Sun Yat-sen University | Holds the SSE STAR Market board-secretary qualification |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
Oct 2023 | Deng Shaohua moves from board secretary to GM assistant; CFO Fan Qiang adds the board-secretary role | Pre-IPO reshuffle. During IPO review, regulators asked whether Deng was suitable for the role in light of a March 2022 regulatory warning from his earlier work as a sponsor representative on another issuer's IPO |
May 2025 | Fan Qiang resigns as board secretary but stays CFO; Deng Shaohua reappointed board secretary | Company cited long-term planning and a change in Fan's focus |
Oct 2025 | Fan Qiang's CFO term ends; Deng Shaohua becomes CFO and board secretary; supervisory board abolished | Board re-election |
Major Shareholders
| Rank | Shareholder | Shares | Stake (%) |
|---|---|---|---|
| 1 | Ke Hanqi | 26,366,670 | 19.75 |
| 2 | Ye Xiaolong | 26,366,670 | 19.75 |
| 3 | Zhang Daogu | 19,586,700 | 14.67 |
| 4 | Shenzhen Nanhai Chengzhang (Co-Win Venture-affiliated fund) | 3,892,500 | 2.92 |
| 5 | Shenzhen Qilonggu Investment Partnership (LP) | 3,766,680 | 2.82 |
| 6 | Huahong Hongxin (Hua Hong-affiliated investment fund) | 2,461,560 | 1.84 |
| 7 | Shenzhen Zhongxinying Investment Partnership (LP) | 2,259,990 | 1.69 |
| 8 | Guotai Haitong Zhengyu Investment (sponsor co-investment) | 1,668,750 | 1.25 |
| 9 | Huaxia SSE STAR Market Semiconductor Materials & Equipment ETF | 1,359,346 | 1.02 |
| 10 | Huiyou Haojia (Huiyou Capital fund) | 1,264,366 | 0.95 |
| — | Top 10 total | 88,993,232 | 66.66 |
Competitive Landscape
Key Competitors
| Competitor | Home market | Overlap with Longtu | Relative positioning |
|---|---|---|---|
Tekscend Photomask (ex-Toppan Photomasks) | Japan; plants in Asia, Europe and the US, including Shanghai | Merchant IC masks at all nodes | Global leader by merchant share; far ahead in technology |
Photronics (NASDAQ: PLAB), including PDMC Taiwan and JV fabs in Xiamen and Hefei | US / Asia | IC masks at mature and mid nodes in China | FY2025 revenue USD 849.3M, of which USD 615.1M from IC; strong local presence through its China JVs |
Dai Nippon Printing (DNP) | Japan | High-end merchant IC masks | Third-largest merchant supplier |
Hoya | Japan | Mask blanks and some masks | Upstream supplier and competitor |
Taiwan Mask Corporation (台灣光罩) | Taiwan | Mature-node IC masks | Regional independent |
Qingyi Photoelectric (清溢光电, 688138) | Shenzhen | Semiconductor chip masks: 180nm in volume, 150nm in small volume, 130nm test platform; new Foshan high-end semiconductor base targeting 65nm | Former employer of Ye Xiaolong and Wang Dong. Display masks dominate its revenue; semiconductor masks were CNY 99.8M in H1 2025 |
Luwei Optoelectronics (路维光电, 688401), including its Luxin semiconductor mask subsidiary | Shenzhen / Xiamen | 180nm in volume, 150/130nm small volume, 130–40nm phase I with 40nm trial production; strong in advanced-packaging masks | Larger and faster-growing; FY2025 revenue CNY 1,155M (+31.9%) |
SMIC captive mask operations | Shanghai / Beijing | Masks for SMIC's own fabs | Captive capacity limits the merchant opportunity at SMIC |
CR Micro mask operations (Wuxi) | Wuxi | Masks for CR Micro and external customers | Group-affiliated competitor at mature nodes |
Hua Hong in-house capability | Shanghai / Wuxi | Partial captive capability at a core customer | Customer is also a potential competitor |
Peer Comparison FY2025
| Company | FY2025 revenue (local currency, M) | Revenue growth (%) | Net profit attributable (local currency, M) | Net margin (%) |
|---|---|---|---|---|
Longtu Photomask (CNY) | 246.66 | 0.06 | 56.09 | 22.74 |
Photronics (USD, FY to Oct 2025) | 849.29 | -2.0 | 136.41 | 16.06 |
Qingyi Photoelectric (CNY) | 1,240 | 11.46 | 187.31 | 15.11 |
Luwei Optoelectronics (CNY) | 1,155 | 31.94 | 252 | 21.82 |
